Equity Residential (EQR) Q4 2025 earnings summary

Executive summary

• 2025 was challenging for the rental housing sector, with strong early-year rental growth offset by deceleration in the latter half, except in San Francisco and New York, which outperformed and are expected to remain strong in 2026.

• Portfolio occupancy exceeded 96% throughout 2025 and is projected at 96.4% for 2026, supported by record-high resident retention and low turnover.

• Shareholder returns totaled $1.38 billion in 2025 through $1.3 billion in dividends and stock repurchases.

• The company remains committed to a diversified portfolio strategy, focusing on urban and suburban exposure across 12 markets.

• Disposed of 11 properties for $1.1B and acquired 9 properties for $636.8M in 2025, focusing on portfolio optimization.

Financial highlights

• 2025 same store revenue grew 2.6% year-over-year, with expense growth at 3.7% and NOI up 2.2%.

• 2025 EPS was $2.94, FFO per share was $3.94, and Normalized FFO per share was $3.99.

• 2026 guidance: EPS of $1.44–$1.56, FFO per share of $3.98–$4.10, and Normalized FFO per share of $4.02–$4.14.

• Net debt to normalized EBITDAre ended 2025 at 4.27x.

• Annual dividend per share: $2.77.

Outlook and guidance

• 2026 same store revenue growth is guided to 1.2%–3.2%, with expense growth of 3.0%–4.0% and NOI growth of 0.5%–2.5%.

• Portfolio occupancy is expected to remain at 96.4% in 2026.

• 35% decline in new multifamily supply, especially in 2H26, is expected to support stronger operating results.

• Revenue growth acceleration in 2026 is contingent on improved job growth; guidance assumes flat job growth similar to late 2025.

• 2026 pricing trend anticipated to follow a more typical seasonal pattern, with improvement in the second half.